SB 254: "An Act making supplemental and other appropriations; and providing for an effective date."
00 SENATE BILL NO. 254 01 "An Act making supplemental and other appropriations; and providing for an effective 02 date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS. The legislature finds that 05 (1) Alaska's salmon fishing and visitor industries are vitally important to the 06 state's economy, representing the two largest private sector employers and employing over 07 50,000 Alaskans; 08 (2) competition from worldwide production of farmed salmon is glutting the 09 world salmon markets, causing both severely reduced prices and decreased demand for 10 Alaska salmon; 11 (3) Alaska's salmon industry has suffered run failures and market disruptions 12 in recent years, resulting in several natural and economic disasters since 1977; projections for 13 2002 are that the catch of sockeye salmon in Bristol Bay will be less than 10 million fish, 14 which is less than half the 20-year average and one of the lowest in history;
01 (4) the price paid for Alaska salmon has declined significantly in the past 02 decade, primarily due to the worldwide increase in farmed salmon production; in 2001, the 03 ex-vessel price paid to fishermen for salmon was one of the lowest in history and less than 04 half the average value in the early 1990's, and early season price projections indicate the price 05 will be even lower in 2002; 06 (5) at present, worldwide demand for canned Alaska salmon is down and 07 canned salmon is selling below production cost, causing a worldwide surplus in canned 08 salmon and impacting many processing companies; this will likely result in severe reductions 09 in processor demand for pink and chum salmon in 2002, with processors providing fewer 10 processing jobs, fewer markets for fishermen, and lower ex-vessel prices; 11 (6) Norway spends in excess of $40 million marketing farmed salmon, 12 including over $7 million marketing in Japan alone; 13 (7) the September 11, 2001, terrorist attacks on New York and the Pentagon 14 led to a significant disruption of our state and national economies; air traffic was immediately 15 disrupted, insurance liability resulted in significant increases to public and private sector 16 insurance rates, and consumer and business confidence has been severely impacted; 17 (8) the visitor industry was the most severely impacted segment of Alaska's 18 economy as a result of the events of September 11; current 2002 summer bookings for both 19 large and small tourism operators are down, and absent remedial actions to increase the 20 number of visitors to Alaska this summer, many businesses are likely to face employee 21 layoffs and possible bankruptcy; 22 (9) domestic and international travelers are currently seeking travel to places 23 that are perceived as safe; Americans are less likely to travel abroad in 2002 and are more 24 likely to pursue travel within the United States; similarly, international travelers destined for 25 the United States are likely to seek a destination perceived as safe; 26 (10) since the September 11 attacks, other destinations in competition with 27 Alaska have committed tens of millions of public dollars to additional emergency tourism 28 marketing to preserve their destinations' market shares, including $31 million for the 29 Caribbean, $15 million for Canada, and $13 million for Las Vegas; absent additional 30 marketing dollars for Alaska tourism marketing, Alaska's visibility in the eyes of potential 31 travelers will continue to erode;
01 (11) Alaska is uniquely positioned to capitalize on the current worldwide 02 tourism industry condition by offering a travel destination that is both exotic and safe; 03 (12) a one-time infusion of significant financing for salmon and tourism 04 marketing is necessary to avert economic disasters to our tourism and fishing businesses and 05 communities, and will reduce the hardship that will otherwise be suffered by many Alaskans; 06 (13) congressional action on national energy legislation could take place in the 07 first quarter of 2002; Arctic Power, the broad-based coalition of Arctic National Wildlife 08 Refuge oil and gas leasing advocates, must be active in this time frame to carry Alaska's 09 message to America's policymakers; a supplemental appropriation at this time will ensure 10 Arctic Power's vigorous presence in all aspects of the debate. 11 * Sec. 2. SALMON INDUSTRY ASSISTANCE PACKAGE. (a) The sum of $5,000,000 12 is appropriated from the general fund to the Department of Community and Economic 13 Development, Alaska Seafood Marketing Institute, for the fiscal years ending June 30, 2002, 14 and June 30, 2003 for generic salmon marketing. 15 (b) The sum of $5,000,000 is appropriated from the general fund to the Department of 16 Community and Economic Development for the fiscal years ending June 30, 2002, and 17 June 30, 2003, to implement expanded international salmon niche marketing programs in 18 developing overseas markets, to conduct strategic salmon market analysis, and for grants to 19 develop and support regional salmon niche marketing programs. 20 * Sec. 3. TOURISM INDUSTRY ASSISTANCE PACKAGE. (a) The sum of $9,800,000 21 is appropriated from the general fund to the Department of Community and Economic 22 Development for the fiscal years ending June 30, 2002, and June 30, 2003, for payment of a 23 grant under AS 37.05.316 to the Alaska Travel Industry Association for additional tourism 24 marketing efforts to mitigate the economic impacts to the Alaska tourism industry from the 25 September 11, 2001 terrorist attacks. The amount appropriated in this subsection includes 26 $250,000 for international tourism marketing. 27 (b) The sum of $200,000 is appropriated from the general fund to the Department of 28 Transportation and Public Facilities, Alaska marine highway system, for the fiscal years 29 ending June 30, 2002 and June 30, 2003, for additional marketing efforts to mitigate the 30 economic impacts to the Alaska tourism industry from the September 11, 2001 terrorist 31 attacks.
01 * Sec. 4. GRANT TO ARCTIC POWER. The sum of $1,000,000 is appropriated from the 02 general fund to the Department of Community and Economic Development for the fiscal 03 years ending June 30, 2002, and June 30, 2003, for payment as a grant under AS 37.05.316 to 04 Arctic Power for educational efforts to open the coastal plain of the Arctic National Wildlife 05 Refuge for oil and gas exploration and development. 06 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).